For more than a decade, Bitcoin was created by Satoshi Nakamoto. This is the first and well-known type of digital currency in the crypto world. But despite its popularity, Bitcoin is not the only digital money that circulates in the online world. About 7,000 forms of cryptos exist in the market these days. Considering this huge number, a lot of investors don’t know which form of digital money is best to invest in. In this post, we are going to offer you the top cryptocurrencies you may invest in 2021. So, if you want to know more about it, keep reading.
Bitcoin Cash (BCH)
Bitcoin and any other cryptocurrencies are being monitored using blockchain technology. This system is responsible for storing data regarding every transaction happening in the crypto world. The crypto transactions happen in “blocks of data’. Each block is consisting of 1 MB of data. Considering the popularity of this digital currency, lots of data blocks are developed. This results in a possible increase in transaction fees and a slowdown in the speed of bitcoin transactions.
Other Bitcoin developers developed a solution that could cut down the data amount required in every block. But some developers think that these solutions will compromise the crypto’s integrity. That’s why they developed Bitcoin Cash, another version of Bitcoin, back in 2017 August. This new version of Bitcoin features powerful blocks that can hold around 8 megabytes of data. This allows for more frequent and faster transactions. The good thing about it is that each transaction requires lower fees than the others.
Decentralizing the currency is one of the primary philosophies behind the development of several forms of cryptocurrencies. One of the cryptos that take this philosophy further is Ethereum. Instead of following the philosophy of decentralizing money, the main goal of this crypto is to develop a decentralized internet by developing a single computer that can be used by crypto users around the world.
Aside from Bitcoin, Ether is the second most popular and largest form of crypto worldwide. It has a total market cap of around 139 billion US Dollars, making it to be the second contributor in the market share. Ethereum becomes popular because it is being used for hosting different digital currencies. This means that the investors make a profit from investing in ETH and enjoy huge benefits from using Ethereum itself.
The Ethereum platform is established using agreements or smart contracts made by two individuals who use the same blockchain network. Unfortunately, this kind of transaction is only possible on Ethereum and other similar platforms. The solution to this problem is oracles. Compared to other crypto platforms that already developed several ways for oracles to recourse their data, Chainlink becomes popular because of its system that guarantees accurate data. This ensures that the smart contracts are legal and valid.
Aside from Bitcoin, there are lots of digital currencies in the crypto world that you may choose to invest in. Just like Bitcoin, the digital currencies we have mentioned above also consist of pros and cons you need to weigh. For more information you can visit online trading platform like this software
Before you decide which digital currency, you want to invest your money in 2021, make sure that you know and understand how a cryptocurrency works. Also, equip yourself with facts and other reliable information that will help you to manage your cryptos safely and securely.
Even though investing in cryptos, such as Bitcoin, is quite risky, the benefits you can get from them are worth it. Bitcoin Cash, Ethereum, and Chainlink are only three of the best cryptocurrencies you should invest in this year.